What accounting accounts should be credited to the dividends received from long term equity investme

The first one should be accounted for under the cost method, and dividends are used as investment income. The second should be the dividends accounted for under the equity method for long-term investment-profit and loss adjustment. You should have a good understanding of the accounting principles of the long-term equity cost method and the equity method, and you can distinguish them.

In addition, the questions you gave are not complete. In general, the questions will tell you what you should calculate according to. For example, equity greater than 20% is the equity method, less than 20% is the cost method, etc.

Long-term equity investment: controlled, uncontrolled, non-significant and non-market value using the cost method. According to the accounting principle of the cost method, except for consolidation, the formed long-term equity investment is based on the actual price paid plus transaction taxes as the initial investment cost, and the cash dividends declared but not yet paid in the actual price cannot be regarded as the initial cost and should be included in the interest receivable.

During the holding period, the investee re-declares the payment of cash dividends, which are recognized as receivables on the one hand, and recognized as current profits and losses on the other hand, and included in investment income. (In fact, under the cost method, it means that your equity is too small, and the other party makes a profit and dividends, so you will collect it as a profit, and if you lose it, you will make an impairment provision, which is similar to **buying**).

Under the equity method: the difference between the actual price paid and the declared and unpaid cash dividends is recognized as the initial cost at the time of joint control and significant influence (20%-50% shareholding) and is included in the long-term equity investment-cost. The profits and losses of the invested enterprises are adjusted according to the part that should be shared or shared, on the one hand, the book value of the long-term investment is included in the long-term investment-profit and loss adjustment, and on the other hand, it is recognized as the current profit or loss and included in the investment income.

When the shared loss is recognized, the excess part shall be reduced to zero by the book value of the long-term investment for future reference and registration, and the excess part of the unrecognized loss shall be restored according to the share of the profit realized by the investee unit in the future, and then the book value of the long-term investment shall be restored. When the investee pays cash dividends, on the one hand, the receivables are recognized, and the carrying amount of the long-term investment is reduced and included in the long-term investment-profit and loss adjustment credit.

There is a lot of content in this chapter, and it is not difficult to remember how to distinguish between the cost method, the equity method and the accounting treatment principle.

Long-term equity investment receives dividends, and the following accounting entries are made according to the specific situation:

1. The board of directors of the investee draws up a dividend distribution plan and does not do accounting treatment for the time being;

2. The general meeting of shareholders of the investee approves the dividend distribution plan, and the long-term equity investment accounted for by the cost method is not accounted for;

3. The general meeting of shareholders of the investee approves the dividend distribution plan, and the long-term equity investment accounted for by the equity method shall be accounted for as follows:

Borrow: Dividends receivable.

Credit: Investment income.

4. The long-term shares accounted for by the cost method are only invested in the following accounting entries when they actually receive dividends from the investee:

Borrow: Bank deposit.

Credit: Investment income.

5. The following accounting entries shall be made when the long-term shares accounted for by the equity method are only invested and the dividends are actually received from the investee:

Borrow: Bank deposit.

Credit: Dividends receivable.

The first entry is the accounting treatment of the investee when the investee declares the distribution of cash dividends under the cost method.

The second entry is the accounting treatment of the investee when the investee declares the distribution of cash dividends under the equity method.

Long-term equity investmentaccounting entries

1. Handling of business combination under the same control: long-term equity investment (acquisition of the owner's equity of the merged party.

The carrying amount in the consolidated financial statements of the ultimate controller.

Share + ultimate controller acquires the merging party's business reputation formed by the merger.

Liabilities (book value of assumed debts), assets (book value of invested assets), capital reserves.

Capital premium or equity premium (the difference, possibly on the debit side).

2. The merging party shall issue equity ** as the merger consideration: long-term equity investment (the book value share of the owner's equity of the merged party in the consolidated financial statements of the ultimate controller + the goodwill formed by the acquisition of the merged party by the ultimate controller), share capital (the number of issues ** par value per share).

System Instructions. An enterprise's equity investment in other units is usually held for a long time, with a view to controlling the investee through equity investment, or exerting significant influence on the investee, or to establish a close relationship with the investee to diversify operational risks.

Long-term equity investment refers to the equity investment in which Qiaoling Investment Enterprise exercises control and significant influence on the investee.

and its joint ventures.

equity investments. In addition, other equity investments are not accounted for as long-term equity investments.

Long-term equity investment

Accounting treatment of distribution of cash dividends, long-term equity investment receives dividends, and the following accounting entries are made according to the specific situation:

1. The board of directors of the investee draws up a dividend distribution plan and does not do accounting treatment for the time being;

2. The dividend distribution plan is approved by the general meeting of shareholders of the large-selling investment unit, and the long-term equity investment accounted for by the cost method is not accounted for;

3. The general meeting of shareholders of the investee approves the dividend distribution plan and the equity method.

Accounting for long-term equity investments do as if rolling teasing down accounting treatment is rotten:

Borrow: dividends receivable, Credit: investment income.

Long-term equity investment receives dividends, and the following accounting entries are made according to the specific situation:

1. The board of directors of the investee draws up a dividend distribution plan and does not do accounting treatment for the time being;

2. The general meeting of shareholders of the investee approves the dividend distribution plan, and the long-term equity investment accounted for by the cost method is not accounted for;

3. The general meeting of shareholders of the investee approves the dividend distribution plan, and the long-term equity investment accounted for by the equity method shall be accounted for as follows:

Borrow: Dividends receivable.

Credit: Investment income.

4. The long-term shares accounted for by the cost method are only invested and the dividends actually received from the investee unit shall be recorded as follows

Borrow: Bank deposit.

Credit: Investment income.

5. The long-term shares accounted for by the equity method are only invested in the following accounting entries when they actually receive dividends from the investment unit of the world:

Borrow: Bank deposit.

Credit: Dividends receivable.

The corresponding account of dividends receivable in long-term equity investment is "investment income".

1. Long-term equity investment is accounted for under the equity method, and dividends receivable generally correspond to long-term equity investment-profit and loss adjustment.

The entries confirming dividends receivable are:

Borrow: Dividends receivable.

Credit: Long-term Equity Investment - Profit and Loss Adjustment.

2. Long-term equity investment is accounted for under the cost method, and dividends receivable generally correspond to investment income.

The entries confirming dividends receivable are:

Borrow: Dividends receivable.

Credit: Investment income.

When the investee declares the distribution of cash dividends, the accounting treatment is: borrow: dividends receivable - a certain unit of a bridge family, and credit: income from investment and consumption of capital sources.

When the actual receipt of the cash dividends declared by the investee is, borrowing: other judicial monetary funds, credit: dividends receivable - a certain unit.

The long-term equity investment of the enterprise shall make the following accounting entries when the investee realizes the profit and declares dividends, borrowing: dividends receivable - xx company, credit: investment income.

When the actual dividend payment is received from the investee, the following will travel and allocation entries shall be made, debit: bank deposits, credit: receivable shares and profits - xx public splitting index.